Choose a short-term debt fund as you will need the funds every two years. The annualized return on this asset class will be 7-8%, and the tax implication will depend on your marginal rate of tax. When you take a vacation, the necessary amount can be withdrawn and the monthly investment will continue, in order to fund your next holiday. The only tweaking you may have to do for your son’s education corpus is to determine the investment asset class. If the investments are in debt-based or hybrid debt mutual funds, the asset class needs to be changed to equity, subject to your risk profile.

Source: Mint March 16, 2020 07:18 UTC